Question

From the following information of X Ltd. for the year ended 31st March, 2015 prepare Notes to Accounts on Finance Costs:

$\begin{array}{ccc}& & \text{Rs}\\ \text{(i) Interest paid on Debentures}& & 1,80,000\\ \text{(ii) Interest paid on Term Loan}& & 3,10,000\\ \text{(iii) Loan Processing Charges}& & \text{60,000}\\ \text{(iv) Interest received on Term Deposits}& & 75,000\\ \text{(v) Discount on Issue of Debentures written off}& & 20,000\\ \text{(vi) Interest paid on Cash Credit}& & 2,50,000\end{array}$

Answer 1

$\begin{array}{ccc}\text{Particulars}& \text{Rs.}& \text{Year ended}\\ & & \mathrm{31.3.2015}\text{(Rs.)}\\ \text{Finance Costs:}& & \\ \text{(i) Interest Expenses:}& & \\ \text{Interest paid on Debentures}& 1,80,000& \\ \text{Interest paid on Term Loan}& 3,10,000& \\ \text{Interest paid on Cash Credit}& \underset{–}{2,50,000}& 7,40,000\\ \left(ii\right)\text{Other Borrowing Costs:}& & \\ \text{Loan Processing Charges}& 60,000& \\ \text{Discount on Issue of Debentures written off}& \underset{–}{20,000}& 80,000\\ & & \underset{–}{}\\ \text{Total}& & \underset{–}{8,20,000}\end{array}$